Hims & Hers stock falls 10% on revenue miss
Here's how the company did based on average analysts' estimates compiled by LSEG:
Revenue at Hims & Hers increased 73% in the second quarter from $315.6 million during the same period last year, according to a release. Hims & Hers reported a net income of $42.5 million, or 17 cents per share, compared to $13.3 million, or 6 cents per share, during the same period a year earlier.
For its third quarter, Hims & Hers said it expected to report revenue between $570 million to $590 million, while analysts were expecting $583 million. The company said its adjusted EBITDA for the quarter will be between the range of $60 million to $70 million. Analysts polled by StreetAccount were expecting $77.1 million.
Hims & Hers has faced controversy in recent months over its continued sale of compounded GLP-1s, which are cheaper, unapproved versions of the blockbuster diabetes and weight loss drugs. Compounded drugs can be mass produced when brand-name treatments are in shortage, but the U.S. Food and Drug Administration announced in February that ongoing supply issues had been resolved.
Some telehealth companies, including Hims & Hers, have continued to offer the compounded medications. It's legal for patients to access personalized doses of the knockoffs in unique cases, like if they are allergic to an ingredient in a branded product, for instance. Hims & Hers has said consumers may still be able to access personalized doses through its site if clinically applicable.
In June, Hims & Hers shares tumbled more than 30% after a short-lived collaboration with Novo Nordisk fell apart. The drugmaker said Hims & Hers "failed to adhere to the law which prohibits mass sales of compounded drugs" under the "false guise" of personalization.
Hims & Hers reported adjusted EBITDA of $82 million for its second quarter, up from $39.3 million last year and above the $73 million expected by StreetAccount.
Hims & Hers will host its quarterly call with investors at 5 p.m. ET.
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Hims & Hers Health, Inc. HIMS delivered an earnings per share (EPS) of 17 cents in second-quarter 2025 compared with the year-ago period's EPS of 6 cents. However, the metric missed the Zacks Consensus Estimate by a penny. HIMS' Revenues in Detail Hims & Hers registered revenues of $544.8 million in the second quarter, up 72.6% year over year. The figure missed the Zacks Consensus Estimate by 1.5%. Solid revenues from the Online channel drove the top line despite being partially offset by Wholesale revenues. Shares of this company lost nearly 12.9% in today's pre-market trading. Hims & Hers' Segment Details Hims & Hers' operations consist of two channels — Online Revenues and Wholesale Revenues. In the quarter under review, Online Revenues of $536.9 million reflected a surge of 74.9% year over year on a reported basis. During the reported quarter, subscribers were 2.4 million (up 30.8% year over year). This was primarily driven by increased traffic to Hims & Hers' platform (through websites and mobile applications), resulting from its marketing activities and improved onsite and customer onboarding experiences and consumer adoption of the company's personalized offerings across its business, including GLP-1 weight loss offerings. Monthly online revenue per average subscriber increased 29.8% year over year to $74 in the second quarter, primarily resulting from subscriber uptake of personalized offerings across Hims & Hers' business, including its GLP-1 weight loss offering, along with changes in product mix. Wholesale Revenues totaled $7.9 million, down 9.7% year over year. Hims & Hers Health, Inc. Price, Consensus and EPS Surprise Hims & Hers Health, Inc. price-consensus-eps-surprise-chart | Hims & Hers Health, Inc. Quote HIMS' Margin Analysis In the second quarter, Hims & Hers' gross profit increased 62.2% year over year to $416.2 million. However, the gross margin contracted 491 basis points (bps) to 76.4%. Marketing expenses jumped 50.3% year over year to $217.9 million, while technology and development expenses increased 102.9% year over year to $37.8 million. General and administrative expenses rose 65.9% year over year to $67.3 million, while operations and support expenses increased 60.4% year over year to $66.5 million. Operating expenses of $389.5 million increased 58.6% year over year. Operating profit totaled $26.7 million, reflecting a 142.3% surge from the year-ago quarter. The operating margin in the second quarter expanded 141 bps to 4.9%. Hims & Hers' Financial Position Hims & Hers exited second-quarter 2025 with cash and cash equivalents and short-term investments of $1.14 billion compared with $322.7 million at the first-quarter end. Cumulative net cash provided by operating activities at the end of second-quarter 2025 was $89.9 million compared with $79.4 million a year ago. HIMS' Outlook Hims & Hers has provided its revenue outlook for the third quarter and reiterated the same for 2025. The company projects revenues for the third quarter of 2025 in the range of $570 million to $590 million, reflecting an uptick of 42-47% year over year. The Zacks Consensus Estimate is pegged at $583.3 million. For the full year, the company continues to project revenues in the range of $2.3 billion to $2.4 billion (representing growth of 56-63% from 2024 levels). The Zacks Consensus Estimate is pegged at $2.35 billion. Our Take on Hims & Hers Hims & Hers' robust improvement in the top and bottom lines and strength in its Online revenue channel in second-quarter 2025 were promising. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging. The expansion of the operating margin during the quarter bodes well. In July, HIMS closed its acquisition of ZAVA, expanding its presence in the U.K. and establishing a foundation in other strategic markets such as Germany, Ireland and France. Per management, the acquisition will likely accelerate the company's ability to expand into markets beyond Europe. In 2026, Hims & Hers expects to enter Canada with an initial focus on a holistic weight loss program, timed to align with the anticipated first-ever availability of generic semaglutide globally. These raise our optimism about the stock. However, Hims & Hers' lower-than-expected results in the second quarter of 2025 and lower Wholesale revenues were disappointing. The gross margin contracted due to rising product costs, which do not bode well for the stock. HIMS' Zacks Rank and Other Key Picks Hims & Hers currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. 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Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2. Boston Scientific has a long-term estimated growth rate of 14%. BSX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report GE HealthCare Technologies Inc. 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